How is the Funded Amount amortized for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The Funded Amount shall be amortized monthly in equal installments beginning in the first year of the term of APLUS Agreement. If APLUS Agreement is terminated for any reason prior to the expiration of the term, Franchisee shall repay to Sunoco the unamortized Funded Amount. Sunoco shall maintain records indicating the total amount due and owing from Franchisee with respect hereto and shall, upon written request by Franchisee, provide Franchisee with copies of such records. Franchisee's obligation to repay
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee accepts funding for equipment and construction, the 'Funded Amount' will be amortized monthly in equal installments starting in the first year of the APLUS Agreement term. This means the franchisee will repay the loan in consistent monthly payments over the life of the franchise agreement.
If the APLUS Agreement is terminated for any reason before the term expires, the franchisee is responsible for repaying the unamortized portion of the Funded Amount to Sunoco. Sunoco will maintain records of the total amount owed by the franchisee and will provide copies of these records upon the franchisee's written request.
It's important to note that the franchisee's obligation to repay the Funded Amount upon termination is in addition to any other rights or claims Sunoco may have. Additionally, the franchisee is responsible for maintaining the equipment purchased under the Funding Agreement, including repairs, replacements, insurance, and taxes.